REG - Orchard Funding Grp - Final Results <Origin Href="QuoteRef">ORCH.L</Origin> - Part 2

Orchard FundingAnnouncement

14/11/2016 07:06

- Part 2: For the preceding part double click  ID:nRSN0319Pa 

    (47,159)    -          
                                       23,360,442  9,408,319  20,747,206  8,827,607  
                                                                                     
 
 
The group held the following financial liabilities at the reporting date: 
 
                                                 2016        2015     
                                                 Group       Company  Group      Company  
                                                 £           £        £          £        
 Other financial liabilities at amortised cost:                                           
 Interest bearing loans and borrowings:                                                   
 Borrowings payable: non current                 27,318      -        -          -        
 Borrowings payable: current                     9,207,927   -        7,015,155  -        
 Trade and other payables                        1,537,478   15,786   1,517,200  15,287   
                                                 10,772,723  15,786   8,532,355  15,287   
 
 
13.3   Fair value of financial instruments 
 
The fair values of the financial assets and liabilities are not materially
different to their carrying values due to the short term nature of the current
assets and liabilities. 
 
13.4   A Financial risk management 
 
The company is exposed through its operations to the following financial
risks: 
 
● Interest rate risk 
 
● Credit risk 
 
● Liquidity risk 
 
The company's policies for financial risk management are outlined in note 3 on
page 25 of the statutory accounts. 
 
14.  Treatment of borrowings 
 
The group borrows money from its bankers and lends this on, together with its
own funds, to its customers. 
 
Any increase in activity leads to an increase in debtors and an associated
increase in borrowings. If the company was one which bought and sold goods or
services the money borrowed would be similar to the company's stock in trade
and the change in creditors would be shown as part of operating cash flows.
However, accounting standards require cash flows from financing to be shown
separately and this means that there appears to be a large outflow of cash
from the company's operations which is then covered by borrowings. For reasons
stated above this is not the case. 
 
15.  Post balance sheet event 
 
On 1 August 2016, Orchard Funding Group plc purchased all the share capital of
Orchard Finance Limited for £100 from Mr R Takhar, the sole shareholder. The
assets Orchard Finance Limited consist mainly of loans made to the group, as
disclosed in note 24 to the statutory accounts, and its liabilities of consist
mainly of cash borrowed. The directors are therefore of the opinion that the
fair values of the assets and liabilities equate to the net book values of the
same. The book values amount to £816. 
 
This information is provided by RNS
The company news service from the London Stock Exchange